‘Housebuilders have been at the forefront of the return to growth, creating a feel good factor which benefits everyone.’

Pidgley said the industry has the capacity to increase the supply of new homes across the country in the coming years with the help of schemes such as Help to Buy.

But he warned of risks stemming from next year’s general election – including changes to tax and planning rules that could disrupt the market.

‘The group remains alert to the uncertainty which will arise from changes to the economic and political landscape in the run-up to a 2015 general election and may impact the business and the market more generally,’ Pidgley added.

He also warned that higher interest rates could hit demand unless they are accompanied by higher wages.

‘Provided any future increases in interest rates or regulation of mortgages are matched with future wages growth as the economy expands, the prospects for the housing market remain positive,’ said Pidgley.

However, Berkeley shares fell 61p to 2,200p, tracking falls in the sector on continuing fears that UK interest rates could rise sooner than expected.